Is it ever viable to combine multiple pricing metrics in one model (for example, a base subscription fee plus a usage-based component, or charging per user plus a smaller fee per transaction), or will that level of complexity deter potential customers?

Based on our pricing strategy book, Price to Scale, it can be viable to combine multiple pricing metrics in a single model—but only if you preserve the core attributes of a great pricing model: simplicity, measurability, and scalability.

Here’s how to think about it:

• Simplicity First:
As discussed in our book (see Chapter “Getting the Model Right”), your pricing model should be simple enough to explain in an elevator ride. Combining a base subscription fee with a usage-based component, for instance, is acceptable if customers can easily understand how these fees work together without confusion.

• Measurable and Scalable:
Make sure that each pricing metric is measurable and scales appropriately. For instance, if you charge per user plus a fee per transaction, you must be able to reliably track both user counts and transaction volumes. The book emphasizes that customers appreciate pricing they can quantify—it creates a direct link between the fee and the perceived value.

• Avoiding Complexity that Deters:
More complex pricing models risk confusing or deterring potential customers. This is why our book advises that any additional layer, like combining metrics, must add clear value or mirror a structure the customers are already accustomed to. A well-structured combination—such as a base fee for ongoing access and a usage-based fee for added value during peak use—can actually align your revenues more closely with customer usage, provided it is communicated clearly.

• Practical Application:
If you decide to implement multiple pricing metrics, pilot test your model with a subset of customers to ensure that the combined structure is both easily understood and fair in reflecting their usage. Feedback will help fine-tune the balance between a flexible pricing approach and the need for clarity.

In summary, our book Price to Scale supports combining pricing metrics as long as you maintain clarity, measurability, and scalability. The goal is to create a model that is straightforward for customers to grasp while still capturing the incremental value they receive.